SCHEDULE 1
PART IIControlled Investments
Options21
F21
Options to acquire or dispose of—
a
a security or contractually based investment (other than one of a kind specified in this paragraph);
b
currency of the United Kingdom or of any other country or territory;
c
palladium, platinum, gold or silver; F3...
d
an option to acquire or dispose of an investment falling within this paragraph by virtue of sub-paragraph (a), (b) or (c)F4;
e
subject to sub-paragraph (4), an option to acquire or dispose of an option to which paragraph 5, 6, 7 or 10 of Section C of Annex I to the markets in financial instruments directive F7(read with Articles 5, 6, 7 and 8 of the Commission Regulation) applies
F12
Subject to sub-paragraph (4), options—
a
to which sub-paragraph (1) does not apply;
b
which relate to commodities;
c
which may be settled physically; and
d
either—
i
to which paragraph 5 or 6 of Section C of Annex I to the markets in financial instruments directive F6(read with Articles 5 and 6 of the Commission Regulation) applies, or
ii
which in accordance with Article F87 of the Commission Regulation are to be considered as having the characteristics of other derivative financial instruments and not being for commercial purposes, and to which paragraph 7 of Section C of Annex I to the markets in financial instruments directive applies.
3
Subject to sub-paragraph (4), options—
a
to which sub-paragraph (1) does not apply;
b
which may be settled physically; and
c
to which paragraph 10 of Section C of Annex I to the markets in financial instruments directive (read with F9Articles 7 and 8 of the Commission Regulation) applies.
4
Sub-paragraphs (1)(e), (2) and (3) only apply to options in relation to which—
a
an investment firm or credit institution is providing or performing investment services and activities on a professional basis,
b
c
d
an AIFM is providing, in accordance with Article 6.4 of the alternative investment fund managers directive the investment service specified in paragraph 1, 4 or 5 of Section A, or the ancillary service specified in paragraph 1 of Section B, of Annex I to the markets in financial instruments directive.
5
Expressions used in sub-paragraphs (1)(e), (2) and (3) and in the markets in financial instruments directive have the same meaning as in that directive.